TDS Rent Calculator — Free Online Tool for India

What Is TDS on Rent?

TDS on rent is a mechanism under the Indian Income Tax Act where the person paying rent (the tenant) deducts a percentage of tax before making the payment to the landlord. This deducted amount is deposited with the government against the landlord's PAN. The concept ensures that tax is collected at the source itself, reducing evasion and simplifying compliance for both parties.

In simple terms, if you pay rent every month, you may be required to deduct a small percentage — typically 2% or 10% — and pay only the net amount to the landlord. The deducted portion goes to the government as advance tax on the landlord's behalf. The TDS rent calculator on this page helps you determine exactly how much to deduct, based on your specific situation.

TDS on rent is governed by two main sections of the Income Tax Act — Section 194-I and Section 194-IB. Each section applies to different types of tenants and has its own TDS rate on rent and compliance requirements. The TDS limit on rent for both sections is ₹50,000 per month — if your monthly rent does not exceed this threshold, no TDS is required.

Section 194-I vs Section 194-IB — What Is the Difference?

Understanding which section applies to you is the first step before using the calculate TDS on rent online tool. Here is a clear comparison:

Section 194-I — For Businesses and Companies

Section 194-I applies when the tenant is a business, company, firm, or any person whose accounts are subject to tax audit under Section 44AB. Key features:

• TDS rate on rent for land, building, or furniture: 10%
• TDS rate on rent for plant, machinery, or equipment: 2%
• TDS is deducted every month from the rent payment
• A TAN (Tax Deduction Account Number) is mandatory
• TDS return is filed quarterly via Form 26Q
• Form 16A must be issued to the landlord each quarter

Section 194-IB — For Individual Tenants

Section 194-IB applies when the tenant is an individual or HUF not under tax audit — typically a salaried person renting a home. Key features:

• TDS rate on rent: 2%
• TDS is deducted once — in the last month of the financial year or tenancy
• No TAN required; your PAN is sufficient
• TDS return is filed via Form 26QC
• Form 16C must be issued to the landlord
• Total TDS under this section is capped at the last month's rent

If the landlord does not provide a PAN, TDS must be deducted at 20% under Section 206AA — regardless of which section applies. The rent TDS calculator 194IB and 194-I on this page automatically applies the correct rate.

How to Use This TDS on Rent Calculator

Our free TDS on rent calculator makes it simple to calculate TDS on rent online. Follow these steps:

1. Select the financial year — Choose FY 2026-27, 2025-26, or 2024-25 to get the applicable rates and thresholds.
2. Confirm landlord residency — Sections 194-I and 194-IB apply only to resident landlords. Non-resident landlords fall under Section 195.
3. Choose tenant type — Select Business/Company for Section 194-I or Individual/HUF for Section 194-IB.
4. Enter monthly rent — Type the exact amount you pay each month.
5. Select property type — Land, building, or furniture attracts 10%; plant or machinery attracts 2%.
6. Confirm PAN availability — No PAN triggers the 20% rate under Section 206AA.
7. Set lease duration — See total TDS over the full tenancy period.

The results appear instantly: TDS rate, monthly TDS, net amount to the landlord, and total TDS over the lease. You also get deposit deadlines, applicable forms (Form 26Q, 26QC, 16A, or 16C), and a late-deposit interest calculator. Copy, share, or print the result as a PDF.

TDS Rates for FY 2026-27

The TDS limit on rent is ₹50,000 per month for both Section 194-I and Section 194-IB. If your monthly rent is ₹50,000 or less, no TDS needs to be deducted. The moment rent exceeds ₹50,000 in any month, TDS applies. Here is a summary of the current TDS rate on rent:

• Land, building, or furniture (Section 194-I): 10%
• Plant, machinery, or equipment (Section 194-I): 2%
• Individual/HUF tenant (Section 194-IB): 2%
• No PAN — Section 206AA: 20% (capped at last month's rent under 194-IB)

The ₹50,000 threshold is checked monthly — it is not an annual cap. If rent is exactly ₹50,000, no TDS is required regardless of how many months you pay. This TDS on rent calculator without signup instantly tells you whether TDS applies based on your input.

Who Needs to Deduct TDS on Rent?

The obligation to deduct TDS on rent falls on the person making the payment. Here is who must comply:

• Businesses and companies — Any business entity paying rent must deduct TDS under Section 194-I, regardless of the amount, if the landlord is a resident.
• Individuals and HUFs under tax audit — If your accounts are subject to audit under Section 44AB, you deduct under Section 194-I (10% or 2%).
• Individuals and HUFs not under tax audit — Salaried persons, freelancers, or any individual paying rent above ₹50,000/month must deduct TDS under Section 194-IB at 2%.
• Landlords — While landlords do not deduct TDS, they must provide their PAN to avoid the higher 20% deduction rate. They should also track TDS credits in their Form 26AS.

Non-resident landlords (NRI or foreign nationals) are governed by Section 195, not 194-I or 194-IB. If your landlord is a non-resident, consult a qualified CA or refer to our NRI property TDS guide.

Frequently Asked Questions

What happens if I do not deduct TDS on rent?

If you fail to deduct TDS, you may be held liable to pay the TDS amount yourself, along with interest under Section 201 — 1% per month for late deduction and 1.5% per month for late deposit. Late filing of the TDS return attracts a fee of ₹200 per day under Section 234E, capped at the TDS amount.

Is TDS deducted on maintenance charges?

No. TDS on rent applies only to the rent component. Maintenance charges that are separately identified and charged at cost are not subject to TDS. However, if maintenance is bundled into the rent with no separate breakdown, the entire amount is treated as rent for TDS purposes.

Does ₹50,000 per month mean an annual threshold of ₹6 lakh?

No. The test under both Section 194-I and Section 194-IB is whether the monthly rent exceeds ₹50,000 in any given month. It is not converted to an annual figure. If your rent is ₹50,000 exactly, no TDS is required.

How is the threshold counted when flatmates pay rent separately?

The ₹50,000 monthly threshold is applied per tenant, per payment. If each flatmate pays rent separately to the landlord, each flatmate checks their own payment against the threshold. If only one person pays the full rent, the threshold applies to the total amount paid.

What changed under the Income-tax Act 2025?

The Income-tax Act 2025 (effective from 1 April 2026) consolidated all income-tax provisions into a single statute. Section 393 of the new Act corresponds to the erstwhile Section 194-IB. The key changes are: the threshold for Section 194-I was revised to ₹50,000 per month, the Section 194-IB rate was reduced to 2% (from 5%), and the statutory cap on total TDS under 194-IB is now explicit.

Disclaimer: This tool is for informational purposes only and does not constitute tax advice. Tax rules can change and individual situations vary — please confirm with a qualified Chartered Accountant before deducting or depositing TDS.

Last updated: 13 September 2026